Organizations use the process of data mining to turn raw data into information it can use. Utilizing software that can identify patterns in large batches of data, organizations can gain isight into their customers and incorporate strategic marketing strategies, increase revenue and lower costs. Data mining relies on effective data collection and warehousing as well as computer processing.
Often, data miners look for batches of information based on possible relationships, or they aim to identify relationships and sequence patterns to make determinations about customer behavior trends.
Data mining can be broken down into the following five steps:
- Enterprises gather data and load it into data warehouses.
- The data is then stored and managed onsite or in the cloud.
- Analysts, executive teams and IT professionals access the data and decide how to organize it.
- Data is sorted.
- Data is presented in a chart or graph.
Data mining is a vital part of the knowledge discovery process. Data mining empowers organizations to analyze vast amounts of data and discover hidden and useful information. Data mining is successfully used in business, as well as in industries such as medicine, transportation, healthcare, insurance and government.